Ant's IPO｜Foreign Telecom: Asian wealth management industry urges clients to sell other assets to participate in Ant's IPO

Financial News

Written by: Zhang Weilun

2020-09-02 22:48

Last update date: 2020-09-02 22:49

The mainland financial technology company Ant Group has launched a plan in Hong Kong and China, and it has also been reported that it plans to raise a total of US$30 billion in the two places.

According to "Reuters" quoted bankers, the Asian wealth management industry is preparing to increase loans to customers and assist customers in selling part of their investment cash to ensure that customers can participate in the Ant stock offering plan.

The report pointed out that institutions engaged in wealth management in Asia provide loans to major customers from time to time to allow them to participate in large-scale IPO fundraising activities, but this time they have taken a step further in their services to encourage customers to participate in ant stock offerings.

It is not only related to the huge profits brought by related transactions, but also related to the impact of the new crown pneumonia epidemic on new businesses.

The report quoted bankers who pointed out that it is not easy to subscribe a larger number of shares in Ant's IPO, because investors are full of expectations for the technology industry.

If a larger amount can be invested in the subscription of new shares, the chance of being allocated shares will be higher.

Proposed to increase customer loan-to-value ratio

The report quoted a source who pointed out that in this ant IPO, individual banks hope to increase the loan-to-value ratio to 80%.

Another source pointed out that individual wealth management companies also recommend Asian clients to reduce or withdraw from fixed income and other under-performing securities to release liquidity to participate in Ant's IPO.

As market participants have anticipated the enthusiastic response from the ant offering this time, wealth management managers who did not want to be named have pointed out that they have advised clients to look for opportunities in the secondary market, not only during the IPO period, because ants are long-term investments.

It is rumored that Ant Group's A-share fund-raising scale exceeds H-share strategic investors to buy at least 1 billion

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